Focus on
You Can
Ideas and Help
FindBlog
What is Income?
As far as the IRS is concerned, any exchange of money or goods is reportable income even if it is not taxable. So, if you sell illegal narcotics on the street the IRS still wants you to pay your fair share on that income. If you trade goods for services with another person the IRS wants both of you to report the dollar value of those transactions as income - even if it takes lace in an online exchange. And, of course, wages, tips, salaries, bonuses, dividends, interest, and distributions as an owner of a corporation are all reportable forms of income.
What is not income can be a bit trickier but basically gifts, inheritances, and life insurance pay outs as a result of someone's death are not taxable although sometimes you still need to report it. Other forms of non-taxable income are Child Support payments, Workers' Compensation Benefits, Welfare Benefits, and Cash Rebates from a Dealer or Manufacturer.
If you are unsure about whether you have income that needs to be reported and if it is taxable you should talk to a Tax Professional and get the clarification you need. We offer an open door/open phone to honest inquiries about how to manage your tax responsibilities and we look forward to speaking with you when you're ready.